FTC Warns Consumers Crypto Deposits Are Not FDIC Insured

The U.S. Federal Trade Commission (FTC) has warned consumers that crypto deposits are not insured by the Federal Deposit Insurance Corporation (FDIC). “That wealth isn’t FDIC insured oregon protected if the crypto institution goes under,” the bureau cautioned. “If thing happens, the authorities whitethorn not person an work to measurement successful and assistance get your wealth back.”

FTC’s Crypto Warning

The U.S. Federal Trade Commission (FTC) issued a Consumer Alert connected Thursday informing that crypto assets are not FDIC-insured. The FDIC is an autarkic national bureau that provides security for slope deposits held by subordinate institutions of up to $250,000 per depositor.

“If your slope is FDIC insured, you’re protected up to $250,000 if the slope fails,” FTC’s Consumer Education Specialist Cristina Miranda explained. In contrast, she stressed:

The funds you deposit with a crypto-based fiscal services supplier … That wealth isn’t FDIC insured oregon protected if the crypto institution goes under.

She past brought up Voyager Digital LLC, a crypto-based fiscal services provider, stating that the institution “misled radical with claims that wealth deposited done a ‘Voyager App’ was FDIC insured if thing went wrong.”

Miranda clarified: “Despite its claims, Voyager was ne'er an FDIC insured bank. And FDIC security doesn’t screen crypto (also called crypto assets.) So, erstwhile Voyager yet failed and filed for bankruptcy, radical with accounts were locked retired and mislaid money.”

Voyager and its affiliated companies person agreed to beryllium permanently banned from offering, marketing, oregon promoting immoderate products oregon services that could beryllium utilized to deposit, exchange, invest, oregon retreat immoderate assets, the FTC explained. The authorities bureau advised:

Know that crypto deposits are not FDIC insured, period. If thing happens, the authorities whitethorn not person an work to measurement successful and assistance get your wealth back.

What bash you deliberation astir FTC’s informing that crypto deposits are not FDIC-insured? Let america cognize successful the comments conception below.